3.86: Long-Term Rates Drop Again

• September 24, 2015

by Tianna Mañón

Mortgage rates are back on the decline, following incremental increases in past weeks.

Freddie Mac reported today that a 30-year fixed-rate mortgage averaged 3.86 percent with a 0.7 point. A year ago, long-term rates were at 4.2 percent. Mortgage rates have now been south of 4 percent for over two months.

“These low mortgage rates have supported strong home sales, and 2015 is on pace to have the highest home sales total since 2007,” said Sean Becketti, chief economist with Freddie Mac. He added that the Fed’s decision to defer a hike was a contributing factor.

“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate. In response, Treasury yields fell about 9 basis points over the week, with some larger day-to-day swings along the way. In response, the interest rate on 30-year fixed rate mortgages dropped by 5 basis points to 3.86 percent.”

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/3.86_lower/10377